The most read financial stories in S&P Global Market Intelligence's Asia-Pacific coverage include China's "deep regret" over the U.S. decision to label it a currency manipulator, while editors' picks feature declines in net interest income and margins at Japanese megabanks.
Most read
1. China expresses 'deep regret' over currency manipulator label, acts to back yuan
The People's Bank of China expressed "deep regret" over the U.S. decision to label China a currency manipulator and stepped in to contain the weakness in the yuan, which depreciated below 7 per dollar for the first time in more than a decade.
2. Surprise rate cuts from Asian central banks ramp up pressure on Fed
Central banks across Asia surprised markets with interest rate cuts, raising the pressure on Federal Reserve Chair Jerome Powell to follow suit. Three central banks in Asia - the Reserve Bank of New Zealand, the Bank of Thailand and the Reserve Bank of India - delivered policy rate cuts on Aug. 7.
3. S&P Ratings takes ratings action on Japanese banks over low profitability
S&P Global Ratings changed Japan's classification to Group 3 from Group 2 under the Banking Industry Country Risk Assessment after raising the country's industry risk score to 4. As a result of low profitability, Ratings downgraded three banks, including Japan Post Bank Co. Ltd. and Orix Bank Corp.
4. Report: HSBC eyeing Aviva's Asian assets
HSBC Holdings PLC is looking at making a bid for the Asian operations that Aviva PLC might off-load. The report came a few days after Aviva confirmed that it was evaluating strategic options for its Asian businesses, Bloomberg News reported.
5. Report: Sumitomo Mitsui Financial to acquire London-based asset manager
Sumitomo Mitsui Financial Group Inc. is acquiring London-based asset manager TT International Investment Management LLP as it seeks to offer new options to Japanese investors amid low domestic yields, The Nikkei reported.
Editors' picks
1. Data Dispatch Asia-Pacific: As China's loan growth slows again, analysts urge more stimulus from government
As China's bank loan growth slowed in the second quarter, analysts urge more stimulus from Beijing to soften the blow from weakening economic growth and lingering trade frictions with the U.S. Policy options could range from cutting banks' required reserve ratios again and capping money market rates via cash injection, to easing restrictions on the property market and shadow banking system, analysts said.
2. Data Dispatch Asia-Pacific: Top Singapore banks see net interest margins rise in Q2
Two of the three largest Singaporean banks by assets reported higher net interest margins in the second quarter against a year earlier, as they charged more of their existing borrowers higher interest rates. Net interest margins at DBS Group Holdings Ltd. and Oversea-Chinese Banking Corp. Ltd. improved, while United Overseas Bank Ltd.'s NIM fell to 1.80% from 1.83%, according to data compiled by S&P Global Market Intelligence.
3. Data Dispatch Asia-Pacific: Net interest income, margins fall at all 3 Japanese megabanks in fiscal Q1
While net interest income and margins continued falling at all three Japanese megabanks in the fiscal quarter ended June 30, Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. posted higher net profits, while Sumitomo Mitsui Financial Group Inc. logged a decline in earnings.
4. Bank of China's Greek branch plans is a vote of confidence in the economy
Bank of China Ltd.'s plans to open a branch in Greece by end 2019 are a "vote of confidence" in the Greek recovery and underscore the importance of the economic relations between the countries, according to analysts.
5. Data Dispatch Asia-Pacific: India's biggest banks post fiscal Q1 net profits as provisions fall
India's biggest banks posted higher profits for the fiscal first quarter ended June 30 on the back of improving asset quality. State Bank of India and Punjab National Bank more than halved their provisions in the period to swing back into fiscal Q1 profits.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
